Why TFS Financial Is Poised to Keep Poppin'

Updated
Why TFS Financial Is Poised to Keep Poppin'

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, bank holding company TFS Financial has earned a respected four-star ranking.

With that in mind, let's take a closer look at TFS and see what CAPS investors are saying about the stock right now.

TFS facts

Headquarters (founded)

Cleveland, Ohio (1938)

Market Cap

$3.6 billion

Industry

Thrifts and mortgage finance

Trailing-12-Month Revenue

$207.2 million

Management

Chairman / CEO Marc Stefanski
CFO David Huffman

Return on Equity (average, past 3 years)

0.8%

Cash / Debt

$284.6 million / $430.8 million

Competitors

Fifth Third Bancorp
KeyCorp
The PNC Financial Services Group


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 85% of the 41 All-Star members who have rated TFS believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, joryko, followed the lead of a fellow Fool and tapped the stock as a special opportunity:

Mutualization play brought to light by Jim Royal. Here is his full write up.

Quite an interesting concept, based upon its incredibly low Price to Book of only 0.6 or so. Pair this up with the company's potential to reinstate its dividend upon pending approval and its ability to buy back HUGE chunks of shares and I am willing to take a flyer.

My very first attempt at not only a mutualization play, but a special situation trade in general, so here goes. 1-3 years.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, TFS may not be your top choice.

After all, many investors are terrified about investing in banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.


The article Why TFS Financial Is Poised to Keep Poppin' originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of Fifth Third Bancorp, KeyCorp, PNC Financial Services, and TFS Financial. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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